CPM (Cost Per Mille)
The cost to show your ad 1,000 times (cost per thousand impressions).
What is CPM (Cost Per Mille)?
CPM (Cost Per Mille/Thousand) is the cost to deliver 1,000 ad impressions. "Mille" is Latin for thousand. It's a common pricing model for display and social media advertising.
Formula: CPM = (Total Ad Spend ÷ Total Impressions) × 1,000. If you spend $100 and get 50,000 impressions, your CPM is $2.
CPM is best for brand awareness campaigns where the goal is maximum reach and visibility, not direct clicks or conversions. You pay for exposure regardless of whether users engage.
Lower CPM isn't always better - a $15 CPM reaching highly qualified prospects is better than $3 CPM reaching irrelevant audiences. Consider CPM in context of targeting quality.
CPM in New Zealand Advertising
NZ CPM rates are generally lower than US/UK markets. Facebook CPM typically ranges from $3-$12, while Google Display averages $2-$8.
CPM campaigns work well for NZ businesses building brand awareness in local markets - geo-targeting keeps costs down while reaching relevant audiences.
Use CPM for brand awareness, event promotion, and top-of-funnel campaigns. Use CPC or conversion-based bidding for direct response campaigns.
NZ Business Examples
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A Queenstown tourism operator runs brand awareness campaign at $6.50 CPM, reaching 150,000 potential visitors for $975 -
A nationwide NZ retailer promotes sale event via Facebook video ads at $4.20 CPM, delivering 800,000 impressions for $3,360 -
An Auckland real estate agency builds local brand awareness at $8.50 CPM across Google Display and Facebook
Real-World Industry Examples
Retail
A clothing brand launches new collection with awareness campaign
CPM bidding delivers 2.5M impressions at $5.20 CPM ($13,000), building brand awareness before conversion campaigns
B2B
A software company targets IT managers with LinkedIn awareness ads
Higher $18 CPM but highly targeted to 25,000 qualified professionals (450,000 impressions)
Events
A conference promotes early bird tickets via social media
Video ads at $7 CPM reach 200,000 event-relevant audiences, driving 1,200 ticket sales
Related Terms
Frequently Asked Questions
When should I use CPM vs CPC?
Use CPM for brand awareness, video views, and reach campaigns where impressions matter. Use CPC for direct response campaigns (leads, sales) where you want to pay only for clicks.
What's a good CPM?
NZ CPM benchmarks: Facebook $3-12, Instagram $5-15, Google Display $2-8, LinkedIn $15-30. "Good" depends on audience quality - highly targeted audiences warrant higher CPM.
How does CPM relate to CPC?
CPM ÷ (CTR × 10) = CPC. For example, $5 CPM with 1% CTR = $5 ÷ 0.01 = $5 CPC. Higher CTR means lower effective CPC for same CPM.
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